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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Chasing dividends. Could you please rank these in order of strength and sustainability.
Read Answer Asked by John on December 03, 2024
Q: With the recent drop in prices, are any of the above attractive for dividends and price appreciation?
Read Answer Asked by Vineet on March 07, 2022
Q: Clarification please: 5i's response to Edgar's question on how split corporations work was, "If a certain net asset value is not maintained, common dividends will cease to protect the preferred shares." The sentence sounds as though the preferred shares will stop being protected. Is it more accurate to say, "If a certain net asset value is not maintained, common dividends will cease IN ORDER to protect the preferred shares"? Sorry about the caps but wanted indicate the difference between the two statements. Thank you.
Read Answer Asked by Jerry on October 25, 2017
Q: This is a comment on Ken's question of this morning regarding LFE. I have analyzed this split share and I thought this might be of benefit to subscribers.: LFE net asset value (NAV) as of February 28 is $ 5.44. The dividends will be discontinued again if NAV goes below $ 5. The portfolio which consists of the four insurance companies Manulife, Sunlife, Greatwest life and Industrial Alliance has to produce a net return of $ 1.825 per unit ($ .625 for the preferred and $ 1.20 for the common) to maintain its dividends. Adding a .75% management fee so the total return for the portfolio has to exceed 11.8 % based on the NAV today. This I think is difficult for a portfolio manager to produce consistently. But if interest rate environment favors life insurance companies this might be achievable. The common share dividends is declared by the manager and to my knowledge the amount is not specific, so it could go up or down. The company uses options to supplement the return and according to their document uses some sort of derivatives which may help increase or (decrease) the value of the unit. Since its IPO, of $25 for both units in 2006 it paid $ 13 ( $ 6.35 for the preferred and $ 6.70 for the common). So yes I consider it risky but the IPO was right before the 2007 crash and lower interest environment which devastated life insurance companies. Although its past is not great, perhaps the future is brighter and it is not without its risk.
Read Answer Asked by Saad on March 18, 2017
Q: Hi: You previously made a comment on LFE in Nov 2016 about this Insurance company group. It has now paid a Dividend for 4 consecutive months. The effective yield is over 18%. Do you think this will last? What may cause this to stop paying a dividend, like it did a few years ago? Has your overall opinion changed. Thanks. Ken ....
Read Answer Asked by Ken on March 17, 2017
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